Cities and Airport-Based Economic Development Strategies: An Analysis of Public-Private Deals to Provide Airline Maintenance Operating Centers in Urban Airports

Samuel Nunn and Carl Schoedel
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Samuel Nunn: Indiana University
Carl Schoedel: Indiana University

Economic Development Quarterly, 1995, vol. 9, issue 2, 159-173

Abstract: Cities often pursue airport-based projects that promise employment gains and multiplier impacts on business and fiscal development. Airline maintenance operations centers (MOCs) offer these benefits but frequently require massive capital investment by cities and commercial airlines. Influenced by regulatory change and market factors, MOCs are expanding in size and number Because of the airline industry's financial instability, however, major risks are involved with public investment in MOCs. The authors explore the dynamics of these maintenance bases as part of urban economic development strategy. Two recent MOC projects are analyzed: that of American Airlines in Fort Worth and that of United Airlines in Indianapolis. To attract MOCs, both cities committed millions in public funds during intense interurban competitions. The authors examine each deal in terms of public accountability, key beneficiaries, distribution of costs, and consistency with previous plans. The article concludes by identifying planning considerations critical for such economic development strategies.

Date: 1995
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ecdequ:v:9:y:1995:i:2:p:159-173

DOI: 10.1177/089124249500900205

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